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30.04.2025 11:10 AM
Stock Market for April 30th: S&P 500 and NASDAQ Continue Clinging to Any Positive News

At the close of the previous regular session, U.S. stock indices finished in positive territory. The S&P 500 rose by 0.58%, and the Nasdaq 100 gained 0.55%. The Dow Jones Industrial Average increased by 0.75%.

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The six-day rally in U.S. stocks has every chance of continuing, although disappointing corporate earnings could pose a threat. Futures for the S&P 500 and Nasdaq 100 dropped by at least 0.5% today after Super Micro shares fell by 15%. This is happening ahead of earnings from large-cap companies such as Microsoft Corp. and Meta Platforms Inc. The MSCI Asian Index rose by 0.4%. U.S. Treasury bonds have continued to gain this month, with the 10-year yield declining for the seventh consecutive day. Gold fell by 0.4%.

European stock futures fluctuated between gains and losses after UBS Group AG posted net income above expectations. Societe Generale SA also exceeded forecasts on both profit and revenue, benefiting from a spike in equity trading. Mercedes-Benz Group AG revised its outlook for the year due to tariff uncertainty. Volkswagen AG's earnings dropped 40%, further confirming the challenges ahead for the company.

Today, a heavy wave of key economic data will test the market's resilience. In the second half of the day, data on U.S. inflation and gross domestic product (GDP) will be released, giving investors more insight into the state of the economy. This is the last quarter that will not yet reflect the U.S. tariffs introduced by President Donald Trump, which came into effect on April 2. Investors remain cautious but optimistic. Markets are simply fluctuating and searching for a new catalyst, which could come from macro data releases or major tech earnings reports.

Clearly, post-earnings, investors will gain a better understanding of how American companies are coping with new conditions as further earnings reports are released. According to economists, the real U.S. GDP growth likely slowed to a standstill in Q1, as Trump's policy changes disrupted economic activity.

Yesterday, Trump renewed his criticism of Fed Chair Jerome Powell during a Tuesday event marking the 100th day of his second term. He also said that China deserves the high tariffs imposed on its exports and predicted that Beijing will find a way to reduce their impact on American consumers.

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Commodities

In the commodities market, oil continued to fall amid signs that the trade war is damaging economic growth and energy demand.

Technical Outlook for S&P 500

Today, the main task for buyers will be to break through the nearest resistance at $5552. Doing so would support further growth and pave the way for a surge toward $5586. An equally important objective for bulls is to gain control over $5605, which would strengthen buyers' positions.

In case of a downward move due to reduced risk appetite, buyers must step in around $5520. A break below this level would quickly drag the instrument back to $5483 and open the path to $5443.

Jakub Novak,
Analytical expert of InstaForex
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